Student Chapter06 - Monitoring Performance Through Control...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Monitoring Performance Through Control Systems Prentice Hall, Chapter 6 1 Learning Objectives • Describe the steps in the control process • Identify behavioral control devices • Describe the objectives of the EOQ model • Contrast data and information Prentice Hall, Chapter 6 2 Learning Objectives • Trace the evolution of modern MIS • Contrast incremental and zero-base budgets • Create a PERT network • Develop a workable control chart Prentice Hall, Chapter 6 3 Managerial Decisions in the Control Process Compare Performance to Standard Measure Performance Yes Do Nothing No Variance Acceptable? Objectives Standard Standard Attained? Yes Do Nothing No Standard Acceptable? Identify Identify Causes Yes No Revise Standard Prentice Hall, Chapter 6 Correct Correct Performance 4 Behavior Finances What Managers Seek to Control Information Prentice Hall, Chapter 6 Operations 5 Controlling Behavior • Selection Process • Formal Regulations • Employee Orientation • Direct Supervision • Mentoring • Training & Development • Goal Setting • Performance Appraisal • Job Design • System of Rewards Prentice Hall, Chapter 6 6 Finances Controlling Budgets Prentice Hall, Financial Ratios Chapter 6 Audits 7 Operations Controlling Scheduling Prentice Hall, Purchasing Chapter 6 8 Information Controlling Quality Prentice Hall, Quantity Chapter 6 9 What Is a Management Information System? Screened for Relevance and Meaning Unorganized Data Organized Into Information Useful to Managers Information Prentice Hall, Chapter 6 10 The Evolution of MIS Management-Focused Data Processing Decentralized End User Computing MIS Fixed-Location Interactive Networks Mobile Interactive Networks Prentice Hall, Chapter 6 11 Are Workplace Controls Always Positive? Ethical Implications of Controls Prentice Hall, Chapter 6 The Downside of Controls 12 Using Budgets for Control Using Budgets for Control Incremental Incremental Zero-Based Zero-Based Top-Down Top-Down Bottom-UP Bottom-UP Activity-Based Activity-Based Cost-Based Cost-Based Prentice Hall, Chapter 6 13 The Budget Process Overall Strategy/Goals Create Proposed Budget Determine Unit’s Goals Be Ready to Negotiate Gather Cost Information Monitor the Budget Share Goals & Cost Estimates Keep Managers Informed Prentice Hall, Chapter 6 14 PERT Network Analysis Prentice Hall, • • • • • Identify main activities Order the activities Diagram the flow Compute time estimate Determine a schedule Chapter 6 15 PERT Network for Furnace Project PERT Network for Furnace Project Event Description Time (in Weeks) Prior Event Time (in A  Approve Design 8 None B  Get Construction Permits 4 None C  Take Bids on New Furnace 6 A D  Order New Furnace 1 C E  Remove Old Furnace 2 B F  Prepare Site 3 E G  Install New Furnace 2 D,F H  Test New Furnace 1 G I Train Workers 2 G J Final Inspection 2 H K Bring Furnace on Line 1 I,J Prentice Hall, Chapter 6 16 PERT Chart for Furnace Project A 6 C 1 D 8 2 H 2 J 1 1 K G Start 2 4 B 2 Prentice Hall, E 3 F Chapter 6 2 1 I 17 Control Chart for 2­Liter Diet Coke Upper Control Limit Quantity 2 qts, 4.6 oz 2 liter (2 qts, 3.6 oz) 2 qts, 2.6 oz Lower Control Limit 5 10 15 20 25 30 35 40 45 Sample Number Date 4 5 8 9 10 1112 13 14 15 16 17 18 19 20 22 23 24 25 26 29 30 Prentice Hall, Chapter 6 18 Control Chart Using Three Standard Deviations as Limits Upper Control Limit Mean Lower Control Limit Prentice Hall, Chapter 6 19 ...
View Full Document

This note was uploaded on 02/22/2012 for the course FINANCE 390:300:03 taught by Professor Palmon during the Fall '10 term at Rutgers.

Ask a homework question - tutors are online